Millennial Funds Startup By Auctioning Off Her Future Income
19-year-old Sarah Hanson has gotten backing for the Senior Living Map by offering 10% of her annual salary for the next ten years.
19-year-old entrepreneur Sarah Hanson from Seattle has found funding for her startup by auctioning off 10% of her future income for the next ten years. A unique strategy for sourcing seed capital, Hanson’s approach asks that investors take a bet on her rather than her venture.
Hanson, who has been coding since she was twelve, has decided to leave college after her first year to develop a startup that makes it easier to find care homes for the elderly. Last year she helped to find an assisted living home for her grandmother and wanted to improve this experience for others by creating a map-based senior living search engine. The ‘Senior Living Map‘ is now something she wants to concentrate on full-time. On the 32auctions website she wrote:
I’ve decided to sell 10% of my (after tax) income for the next 10 years of my life. Why? I’m realistic enough to know that as a 19 year old female, with no proven track record, I have about a 0% chance of finding someone to invest in Senior Living Map. So to up the stakes, I’m offering a piece of me. I can’t guarantee Senior Living Map will be a success but I can guarantee that I will be. So instead of asking you to “bet” on my first venture, I’m asking you to bet on me. I’m asking you to bet and believe that in 10 years time, 10% of my income will be your best investment.
The winning bid was $125,000, which Hanson will now use to fund her startup. The San Francisco-based bidder has asked for her name to be kept confidential.